Hemming Company reported the following current$-$year purchases and sales for its only product.

Date Activities Units Acquired at Cost Units Sold at Retail

January $1$ Beginning inventory $280$ units @ $$13\mathrm{.}20=$ $ $3,696$

January $10$ Sales $240$ units @ $$43\mathrm{.}20$

March $14$ Purchase $460$ units @ $$18\mathrm{.}20=8,372$

March $15$ Sales $410$ units @ $$43\mathrm{.}20$

July $30$ Purchase $480$ units @ $$23\mathrm{.}20=11,136$

October $5$ Sales $450$ units @ $$43\mathrm{.}20$

October $26$ Purchase $180$ units @ $$28\mathrm{.}20=5,076$

Totals $1,400$ units $ $28,2801,100$ units

Required:

Hemming uses a perpetual inventory system.

Determine the costs assigned to ending inventory and to cost of goods sold using FIFO.

Determine the costs assigned to ending inventory and to cost of goods sold using LIFO.

Compute the gross profit for FIFO method and LIFO method.

Answer rating: 100% (QA)

To address this query lets perform calculations using both the FIFO FirstIn FirstOut and LIFO LastIn FirstOut inventory costing methods under a perpet... View the full answer